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DECISION No

DECISION No. 202/1999/QD-TTg OF OCTOBER 12, 1999 APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM�S SEAPORT SYSTEM TILL THE YEAR 2010

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Considering the proposal of the Ministry of Communications and Transport (Official Dispatches No. 145/KHDT of January 16, 1997, No. 680/KHDT of March 14, 1998 and No. 3007/GTVT-KHDT of September 3, 1999) and the evaluation opinion of the State Council for Evaluation of Investment Projects (Official Dispatches No. 4848/HDTD of July 14, 1998 and No. 77/TDNN of July 24, 1999),

DECIDES:

Article 1.- To approve the master plan on the development of Vietnam�s seaport system till the year 2010 with the following principal contents:

1. Objectives of the master plan

- The overall objective: To serve as the basis for the construction and development of the seaport system of Vietnam according to a national overall and uniform planning; for the establishment of communications and transport infrastructures-linking centers in different regions and particularly in key economic regions; for the creation of seaport technical and material bases, in order to promote the economic development and, at the same time, to confirm to the region and the world the position and advantages of the country�s marine economics, and create important hubs for economic exchange between the country and foreign countries.

- Specific objectives:

+ To plan the development of Vietnam�s seaport system so as to meet the requirements of national industrialization and modernization on the basis of maritime technological and scientific advances in terms of scale, facilities and equipment, technological line and managerial system with a view to step by step enabling our country to integrate and compete in the field of seaport activities with the countries in the region and the world.

+ The seaport system of Vietnam will ensure the handling of the whole volume of goods imported and exported by sea to meet the requirements of the growth of the national economy, with the expected capacity of around 106 million tons/year by the year 2003 and 200 million tons/year by the year 2010.

+ The seaport system of Vietnam will be planned and distributed all over the country at the locations where exist conditions and demands for the construction of seaports, in order to tap the natural advantages, make full use of the potential of sea shipping, well serve the economic zones and industrial parks, and save up investment expenditures and port exploitation expenditures.

2. Orientations for planning the development of Vietnam�s seaport system

- Improving, upgrading and modernizing the exis-ting seaports, bringing into full play the natural conditions and available facilities in order to make rational investment in and efficiently exploit the port system.

- Concentrating on the construction of a number of integrated ports which will play the major role in key economic zones to accommodate ships of large tonnage (over 30,000 DWT). Placing emphasis on ports or wharves used exclusively for goods in containers, bulky goods and liquid goods, and on international entrepot ports.

- Prioritizing the construction of a number of ports in different localities on the basis of carefully considering their investment efficiency, making sure that their functions and scale be suitable to the level of the local economic development and capital mobilization capability.

- Together with the development of ports, attention should be paid to the synchronous development of maritime services and related infrastructures in order to raise the ports� servicing capability and investment efficiency.

- In investing in the development as well as exploitation of seaports, it is necessary to closely combine the economic development requirements with the national defense requirements.

3. The master plan on the development of Vietnam�s seaport system till the year 2010

The seaport system of Vietnam by the year 2010 shall consist of 8 groups:

- Group 1: The group of seaports in Northern Vietnam, including those from Quang Ninh to Ninh Binh.

- Group 2: The group of seaports in northern Central Vietnam, including those from Thanh Hoa to Ha Tinh.

- Group 3: The group of seaports in central Central Vietnam, including those from Quang Binh to Quang Ngai.

- Group 4: The group of seaports in southern Central Vietnam, including those from Binh Dinh to Binh Thuan.

- Group 5: The group of seaports of Ho Chi Minh city, Dong Nai and Ba Ria-Vung Tau.

- Group 6: The group of Mekong River Delta seaports.

- Group 7: The group of seaports of islands in western South Vietnam.

- Group 8: The group of seaports of Con Dao.

In each of the above-mentioned groups of seaports there will be integrated and specialized seaports (coastal ports, floating ports, anchorages in navigational areas and dry docks); the functions and tasks of each group of seaports shall be as proposed by the Ministry of Communications and Transport in Document No. 680/KHDT of March 14, 1998.

The seaports included in the master plan are listed in the appendix attached to this Decision.

4. Potential ports

The master plan identifies a list of potential ports which are expected to be developed largely after the year 2010, it is necessary to reserve an appropriate land fund for their construction.

For potential ports, depending on the demand and capability of investment implementation, the Ministry of Communications and Transport shall study and submit a list of such ports to the Prime Minister for consideration and approval.

Article 2.- Management of the master plan on the seaport system

1. The Ministry of Communications and Transport as a specialized State management agency shall, through the Vietnam Maritime Bureau, be answerable to the Prime Minister for managing the approved master plan on the seaport system development.

2. To assign the Ministry of Communications and Transport to decide specific adjustments of ports, which must not be contrary to the functions and scopes of seaport groups in the approved master plan.

- If it is necessary to supplement or adjust the approved master plan, the Vietnam Maritime Bureau shall study and report such to the Minister of Communications and Transport for submission to the Prime Minister for consideration and decision.

3. To assign the Ministry of Communications and Transport to draw up the detailed plans on seaport groups 1, 3, 5 and 6 and submit them to the Prime Minister for approval.

To assign the Ministry of Communications and Transport to approve the detailed plans of the rest of seaport groups.

4. To assign the Ministry of Communications and Transport to work out a mechanism for generating investment capital sources for the development of seaports and their infrastructures, submit it to the Government for approval in the direction that the State shall exercise unified management of seaport infrastructures, enterprises shall be hired to exploit seaports and pay charges so as to ensure the source of revenues for capital investors in such seaports as well as the source of exclusive revenues of the State, which shall be reinvested in developing the port system and seaport infrastructure according to the approved master plan.

5. To assign the People�s Committees of the provinces and centrally-run cities and the General Land Administration to strictly manage the land fund as prescribed by law in order to meet the requirements of development and construction of the seaport system according to the master plan.

6. To assign the Ministry of Communications and Transport to coordinate with the People�s Committees of the provinces and centrally-run cities and the concerned ministries and branches in organizing the construction of the communications network leading to ports: land roads, railways, riverways and sea routes, in order to synchronously exploit the seaports and raise their handling capacity.

Article 3.- Deployment of the implementation of the master plan

1. To assign the Ministry of Communications and Transport to direct, on the basis of the approved master plan on the development of the seaport system of Vietnam till the year 2010, the Vietnam Maritime Bureau to elaborate the development investment plan for each period suitable to the socio-economic development requirements.

2. From now till the year 2003, investment shall be concentrated on the following 10 key ports:

- The Cai Lan integrated port.

- The Hai Phong integrated port.

- The Cua Lo integrated port.

- The Da Nang integrated port (Tien Sa - Han River).

- The port exclusively used for the Dung Quat industrial park.

- The Quy Nhon integrated port.

- The Nha Trang integrated port.

- The Thi Vai integrated port.

- The Sai Gon integrated port.

- The Can Tho integrated port.

3. Sources of investment capital: To mobilize domestic and foreign sources of capital, including State budget capital, ODA loan capital, and investment capital in the forms of joint ventures, BOT contracts, and other capital sources.

The key ports shall have priority in receiving State capital for investment, ensuring the leading role of the State in managing the exploitation of the port system.

To permit the branches, localities and domestic enterprises to invest their own capital or through joint ventures with foreign parties in other ports in conformity with the master plan.

4. The order of investment in construction of ports shall comply with the provisions in the Regulation on the Management of Maritime Activities at Seaports and Maritime Areas in Vietnam issued together with the Government�s Decree No. 13-CP of February 25, 1994 and the Regulation on Investment and Construction Management issued together with the Government�s Decree No. 52/1999/ND-CP of July 8, 1999 and other relevant regulations.

Article 4.- This Decision takes effect 15 days after its signing.

Article 5.- The ministers, the heads of the concerned ministerial-level agencies and agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities and the Director of the Vietnam Maritime Bureau shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI

APPENDIX:

APPENDIX

LIST OF SEAPORTS IN THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM�S SEAPORT SYSTEM TILL THE YEAR 2010

(Issued together with Decision No. 202/1999/QD-TTg of October 12, 1999)

Serial No.

NAMES OF PORTS

CURRENT STATUS

DEVELOPMENT PLAN

REMARKS

CLASSIFICATION

BY THE YEAR 2003

BY THE YEAR 2010

Being operational

Size of ships able to enter the port (DWT)

Integrated ports

Specialized ports

Expected port capacity (in million tons)

Expected size of ships able to enter the port (DWT)

Expected port capacity (in million tons)

Expected size of ships able to enter the port (DWT)

1

2

3

4

5

6

7

8

9

10

11

1 2 3 4 5 6 7 8 9 10 11

I GROUP OF NORTHERN

VIETNAM SEAPORTS

1 Mui Chua port x 0.1 - 0.2 1,000 0.2 2, - 3,000

2 Cua Ong port x Coal 4.0 - 4.1 30,000 5.0 - 5.2 50,000

3 Cam Pha port x Steel 4.0 - 5.0 30, - 50,000

4 Hon Gai coal port (Cau Trang) x 15,000 Coal 1.0 - 1.2 15,000 1.8 - 2.0 5,000 The coal port shall be

moved to Cau Trang,

Hon Gai port shall be

transformed into

a passenger one

5 Hoanh Bo port Cement 1.2 - 1.4 20,000 3.5 - 3.8 20,000

6 Cai Lan port * 1.8 - 2.8 40,000 16.0 - 17.0 50,000

7 B12 oil port x 30,000 Oil 1.5 - 2.0 30,000 3.0 - 3.5 30,000 To be moved to

a new location

8 Dien Cong port x 5,000 Coal 0.3 5,000 0.3 - 0.4 5,000

9 Hai Phong port (Hoang Dieu, x * 6.2 10,000 8.0 - 8.5 10,000

Vat Cach, Chua Ve)

10 Cua Cam port x 5,000 0.4 5,000 0.8 5,000

11 Northern Container Company port x 0.5 - 0.6 10,000 1.0 10,000

12 Hai Phong port (Dinh Vu area) x 2.5 - 6.0 10,000

13 Dinh Vu Industrial Park port IP 2.0 - 6.5 10,000

14 Dinh Vu joint venture oil port Oil products - 10,000 To be concretized

in the detailed seaport

group plan

15 Thuong Ly port x 3,000 Oil 0.3 3,000 0.3 3,000

16 Joint venture gas, petroleum x 5,000 Gas, 0.3 5, - 10,000 0.4 - 0.5 5, - 10,000

and oil ports (Dai Hai, Total, petroleum,

Petex, Thang Long) oil

17 Caltex-Vietnam joint venture port x 1,000 Tar 5,000 - 5,000

18 Bach Dang port x 2.5 10,000 To be concretized

in the detailed seaport

group plan

19 Cement port (Chinfon cement x 5,000 Cement 2.2 - 2.4 5,000 2.4 - 2.6 5,000

and Hai Phong cement)

20 Transvina joint venture port x 0.3 - 0.4 10,000 0.3 - 0.4 10,000

21 128 naval flotilla port x 3,000 x In service 3, - 5,000 In service 3, - 5,000

of national of national

defense defense and

economy

22 Dong Hai industrial park port x 10,000 10,000 To be concretized

in the detailed seaport

group plan

23 Diem Dien port x 600 x 0.1 - 0.2 600 0.2 - 0.3 600

24 Hai Thinh port x 1,000 x 0.3 - 0.4 1,000 0.5 - 0.6 2,000

Potential ports

+ Ports of the Bach Dang river x

+ Ports of the Chanh river Oil

II GROUP OF NORTHERN CENTRAL VIETNAM SEAPORTS

25 Le Mon port x 1,000 x 0.3 - 0.4 1,000 0.6 - 0.7 1,000

26 Nghi Son port Cement 1.2 - 1.5 30,000 2.5 30,000

27 Nghe Tinh port (Cua Lo-Ben

Thuy) x 10,000 * 1.4 - 2.0 10,000 2.9 - 3.5 10,000

28 Nghi Huong oil port x 3, - 5,000 Oil 0.2 - 0.3 10,000 0.4 - 0.5 10,000

29 Hung Hoa oil port x 1,000 Oil 0.2 - 0.3 1,200 0.4 - 0.5 1,200

30 Xuan Hai port x 2,000 x 0.1 - 0.2 1,000 0.3 - 0.5 1,000

31 Vung Ang port * 0.6 - 1.1 15,000 2.6 - 3.9 30,000

Potential ports:

+ Nghi Son port Oil

+ Thach Khe port Iron ore

+ Hon La port Integrated

III GROUP OF CENTRAL CENTRAL VIETNAM SEAPORTS

32 Quang Binh port (area of Gianh x 1,000 x 0.2 - 0.3 1,000 0.3 - 0.4 1,000

port, Nhat Le)

33 Gianh river petroleum and oil port x 400 - 600 Oil 0.1 1,000 0.1 - 0.2 1,000

34 Cua Viet port x 400 - 600 x 0.1 - 0.2 1,000 0.1 - 0.2 1,000

35 Thuan An port x 600 x 0.2 1,000 0.2 2,000

36 Thuan An petroleum and oil port x 400 - 600 Oil 0.1 - 0.2 1,000 0.2 - 0.3 2,000

37 Chan May port * 0.4 - 0.5 30,000 2.2 - 2.3 50,000

38 Da Nang port *

+ Tien Sa - Han river x 15,000 2.2 - 2.4 10, - 30,000 3.6 - 3.9 30,000

+ Lien Chieu zone 8.0 - 8.5 50,000

39 Port 234 (Fifth military zone) x 2, - 3,000 x 0.2 - 0.3 3,000 0.3. - 0.4 2, - 3,000

40 Da Nang sea shipping company

port x 3,000 x 3,000 3,000

41 Petroleum & oil port in Da Nang area

+ My Khe x 30,000 Oil 0.5 30,000 0.8 - 1.0 30,000 To be moved to

a new location

+ Nai Hien x 1, - 3,000 Oil 0.1 - 0.2 3,000 0.1 -0.2 3,000

+ Lien Chieu x 7,000 Oil 0.1 7,000 0.1 7,000

42 Hai Van port x Cement 0.5 - 0.6 5,000 0.5 - 0.6 10,000

43 Ky Ha port (for dismantlement of x x 0.2 - 0.3 3, - 5,000 0.4 - 0.5 3, - 10,000 Permitted to be used

old ships, liquefied gas, as an integrated, iron

integrated�) and steel port

44 Sa Ky port x To be concretized

in the detailed

seaport group plan

45 Dung Quat port *

+ Petrochemicals refinery area Oil 13.0 - 13.5 80,000 25.0 - 26.0 200,000

+ Area for assorted goods * 0.2 - 0.3 10,000 2.0 - 2.5 30,000

+ Area for bulky goods 50,000

+ Oil and gas services 10,000

Potential ports

+ Nam O port

IV GROUP OF SOUTHERN CENTRAL VIETNAM SEAPORTS

46 Quy Nhon port *

+ Existing Quy Nhon area x 10,000 * 1.1 - 1.3 10,000 1.3 10,000

+ Nhon Hoi area x 2.0 30,000

47 Quy Nhon petroleum and oil port x 3,000 Oil 0.2 10,000 0.5 - 0.8 10,000

48 Thi Nai port x 5,000 x 0.2 5,000 0.4 - 0.6 5,000

49 Vung Ro port x x Petroleum 0.1 5,000 0.4 - 0.6 10,000 Petroleum and oil and

and oil integrated port

50 Hon Khoi port x 600 Salt 0.1 600 0.1 - 0.2 600

51 Nha Trang port x 10,000 * 0.6 - 0.7 20,000 0.8 - 1.0 20,000

52 Ba Ngoi port x x 0.1 - 0.2 15,000 0.3 - 0.4 20,000

53 Mui Chut port x 5,000 Oil 0.2 - 0.3 10,000 0.7 - 0.8 10,000

54 Phu Quy port (sea products and x x - 1,000 - 1, - 2,000 To be concretized

service of the island district) in the detailed seaport group plan

55 Dam Mon port x 30,000 Sand 0.1 - 0.2 30,000 0.2 30,000

Potential ports

+ Van Phong intenational entrep�t

port (Khanh Hoa)

+ Mui Ne port Bulky ore

V GROUP OF SEAPORTS OF HO CHI MINH CITY, DONG NAI AND BA RIA-VUNG TAU

Area of Ho Chi Minh city

56 Sai Gon port (Nha Rong, Khanh x 15, - 20,000 * 8.5 - 9.5 20, - 25,000 9.0 - 10.0 25, - 30,000

Hoi, Tan Thuan)

57 Nha Be area port x - 2.5 - 3.5 25, - 30,000

58 Vietxo Lighter port x 10,000 x 0.3 - 0.4 10,000 0.3 - 0.4 10,000

59 Ben Nghe port x 15,000 * 1.5 - 1.6 20,000 2.1 - 2.3 20,000

60 Southern Riverways

Corporation port x - 10,000 - 10,000 To be concretized

in the detailed

seaport group plan

61 Transport development joint x x 0.6 - 0.8 20,000 1.4 - 1.5 20,000

venture company No. 1 port

62 ELF gas port x 5,000 Gas 0.05 - 0.1 5,000 0.1 10,000

63 Tan Thuan export processing 1.0 20,000 2.0 20,000 To be concretized

zone port in the detailed

seaport group plan

64 Tan Thuan Dong vegetables x 10,000 x 0.4 - 0.5 15,000 0.4 - 0.5 15,000

and fruit port

65 Bong Sen port x x 0.2 - 0.3 10,000 0.2 - 0.3 10,000

66 Naval Tan Cang port (Tan Cang x 10,000 * 3.6 -4.3 10, - 15,000 3.0 - 3.5 10, - 15,000

and Cat Lai)

67 Vegetable oil port x 10,000 x Vegetable oil 0.5 - 0.6 15,000 1.0 - 1.2 20,000

68 Nha Be petrol and oil port x 25,000 Oil 3.0 25,000 4.5 25,000

69 Petechim petrol and oil port Oil 0.5 - 0.6 25,000 4.5 25,000

70 Petec petrol and oil port x 25,000 Oil 0.6 25,000 1.0 25,000

71 Sai Gon Petro petrol and oil port x 25,000 Oil 0.6 25,000 1.0 25,000

72 VITAICO port x 20,000 Wood chips 0.2 25,000 0.2 - 0.3 25,000

73 Phu Dong joint venture company

port x Wood chips 0.2 25,000 0.2 - 0.4 25,000

74 Phuoc Khanh port x Wood chips 0.1 - 0.2 25,000 0.2 - 0.3 25,000

75 Sao Mai (Cat Lai ) port x 10,000 Cement 0.5 - 1.0 15,000 2.2 15,000

76 Ports of Hiep Phuoc area 2.0 - 2.5 20,000 6.0 - 7.0 25,000

+ Oil port of the power plant Oil

+ Nghi Son cement port Cement

+ Hiep Phuoc industrial park port

+ Other ports

Potential ports

+ Hiep Phuoc integrated port

+ Phuoc Luong, Cat Lai port

+ Can Gio port

Ports of Ba Ria-Vung Tau and Dong Nai area

77 Dong Nai port x 1,000 x 1, - 2,000 1, - 2,000

78 Dong Nai gas port (SCTGAS

and VT.GAS)

79 Phuoc Thai (Ve Dan) port x 5,000 0.4 5, - 10,000 1.0 - 1.5 10, - 15,000

80 Go Dau A port x 2,000 x 0.2 - 0.3 5, - 10,000 0.8 - 1.0 15,000

81 Long Thanh port x 2,000 Fertilizers 0.2 - 0.3 3, - 5,000 0.3 3, - 5,000

82 PVC gas (unique gas) port x 5,000 Gas 0.1 5,000 0.1 - 0.2 5,000

83 Go Dau B port x * - 5, - 10,000 3.0 - 4.0 15,000

84 Go Dau C port x 0.8 - 1.0 15,000

85 Oil port of the Phu My power plant x Oil 0.4 - 0.6 10,000 1.0 - 1.2 10,000

86 Ports in joint venture with foreign

partners

+ Integrated port x - - 6.0 - 6.5 30,000 1,300 m long

+ Thi Vai joint venture port x 0.5 - 0.6 30,000 3.0 30,000 Vung Tau Ship -

Vinakoei - VSC

joint venture

(660 m long)

87 Ba Ria Serece port x 30,000 x 0.3 - 0.4 30,000 2.0 - 3.0 30,000

88 Chemicals port

+ Port of the power and x - 1.0 - 1.5 30,000

nitrogenous fertilizer factory

+ Port of the Methanol factory x - 1.0 - 1.5 30,000

89 Cement (Chinfon) port Cement 1.0 - 1.2 20,000 3.5 - 4.0 20,000 To be concretized

in the seaport

group plan

90 Thi Vai integrated port * 0.5 - 0.6 30,000 6.5 - 10 30,000 2,000 m long

91 Cai Mep Vinafood port x Food and 0.3 - 0.3 30,000 1.5 - 2.5 30,000

foodstuff

92 Cai Mep container port x 30, - 50,000 3.5 - 4.0 30, - 50,000

93 PVC factory port Liquefied gas 30, - 50,000 30, - 50,000

products

94 Cai Mep oil port

+ LPG port (Petro Vietnam) Oil and gas 0.8 - 1.0 30, - 50,000 3.5 - 4.5 50,000

+ Sai Gon Petro port Oil and gas 0.8 - 1.0 30, - 50,000 3.5 - 4.5 50,000

+ PETEC port Oil and gas 0.8 - 1.0 30, - 50,000 3.5 - 4.5 50,000

95 Long Son port zone Oil products 10.0 - 11.0 30,000

96 Cat Lo port x 5,000 x 0.2 - 0.3 5,000 0.8 - 1.0 10,000

97 PTSC port x 10,000 In service of - 10,000 - 10,000

oil and gas

98 VietsovPetro port x 5, - 10,000 In service of - 10,000 - 10,000

oil and gas

99 K2 oil port x 3,000 Oil 0.2 3,000 0.3 - 0.4 7,000

Potential ports 30 wharves 15, - 55,000

+ Ports of the Cai Mep river mouth x

Container port -

Hoan Nguyen steel port -

+ Phuoc An port x

+ Vung Tau integrated port At Ben Dinh - Sao Mai

VI GROUP OF MEKONG RIVER DELTA SEAPORTS

100 Can Tho port (including the x 5,000 * 2.0 - 2.5 5, - 10,000 3.5 - 4.5 10,000 To be concretized

existing Hoang Dieu and Tra Noc, in the seaport

and constructing new Cat Cui) group plan

101 Can Tho oil and gas ports - 5,000 0.5 - 1.0 5,000 Including Mekong

Gas - Petrolimex

102 Cao Lanh - Sa Dec port x 2,000 x 0.3 3,000 0.3 - 0.4 5,000

103 Vinh Thai port x 2,500 x 0.2 - 0.3 2,000 0.4 - 0.5 2,000

104 My Thoi port x 3,000 x 0.3 5,000 0.5 - 0.6 5,000

105 My Tho port x 2,500 x 0.3 - 0.4 3,000 0.6 - 0.7 5,000

106 Viet Nguyen port x - 5,000 - 5,000

107 Hon Chong port x 1,000 x 0.1 - 0.2 1,000 0.3 2,000

108 Nam Can port x <2,000 x 0.1 1,000 0.2 - 0.3 2,000

109 Long An port (Soai Rap river) x 0.3 5, - 10,000 0.4 - 0.5 5, - 20,000

110 Dai Ngai port x 0.2 5,000 0.4 - 0.5 5,000

111 Tra Cu port x 0.2 - 0.3 5,000

112 Binh Tri port x 10,000 Cement 1.7 10,000 1.8 - 2.0 10,000

VII GROUP OF SEAPORTS OF WESTERN SOUTHERN ISLANDS

113 An Thoi and Duong Dong floating 2 wharves 60,000 2 wharves 60,000

ports (Phu Quoc)

Potential port

+ Hon Thom port

VIII GROUP OF CON DAO SEAPORTS

114 Ben Dam port x x - 2,000 - 2,000

Potential port

+ Con Dao port

Notes:

1. Volume of goods handled: 1995: 34,000,000 tons; 1996: 39,800,000 tons; 1997: 45,763,000 tons; 1998: 53,571,000 tons; - The goods volume increases 16.35% annually on average.

2. In the master plan on Vietnam�s seaport system till the year 2010 there are also floating ports in service of goods loading and unloading, service ports in service of Vietnam�s ship industry, and offshore floating ports in service of oil and gas exploitation and export.

3. Mark "*" implies key integrated ports of the seaport groups in the master plan.